Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Friday Stock Market CRASH Following Israel Attack on Iranian Nuclear Facilities - 19th Apr 24
All Measures to Combat Global Warming Are Smoke and Mirrors! - 18th Apr 24
Cisco Then vs. Nvidia Now - 18th Apr 24
Is the Biden Administration Trying To Destroy the Dollar? - 18th Apr 24
S&P Stock Market Trend Forecast to Dec 2024 - 16th Apr 24
No Deposit Bonuses: Boost Your Finances - 16th Apr 24
Global Warming ClImate Change Mega Death Trend - 8th Apr 24
Gold Is Rallying Again, But Silver Could Get REALLY Interesting - 8th Apr 24
Media Elite Belittle Inflation Struggles of Ordinary Americans - 8th Apr 24
Profit from the Roaring AI 2020's Tech Stocks Economic Boom - 8th Apr 24
Stock Market Election Year Five Nights at Freddy's - 7th Apr 24
It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- 7th Apr 24
AI Revolution and NVDA: Why Tough Going May Be Ahead - 7th Apr 24
Hidden cost of US homeownership just saw its biggest spike in 5 years - 7th Apr 24
What Happens To Gold Price If The Fed Doesn’t Cut Rates? - 7th Apr 24
The Fed is becoming increasingly divided on interest rates - 7th Apr 24
The Evils of Paper Money Have no End - 7th Apr 24
Stock Market Presidential Election Cycle Seasonal Trend Analysis - 3rd Apr 24
Stock Market Presidential Election Cycle Seasonal Trend - 2nd Apr 24
Dow Stock Market Annual Percent Change Analysis 2024 - 2nd Apr 24
Bitcoin S&P Pattern - 31st Mar 24
S&P Stock Market Correlating Seasonal Swings - 31st Mar 24
Here's a Dirty Little Secret: Federal Reserve Monetary Policy Is Still Loose - 31st Mar 24
Tandem Chairman Paul Pester on Fintech, AI, and the Future of Banking in the UK - 31st Mar 24
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Cash ISAs still have some fight left in them

Personal_Finance / ISA's Aug 22, 2016 - 04:34 PM GMT

By: MoneyFacts


Savers are likely to have lost all enthusiasm in getting a decent return on their cash, thanks to a lack of competition in the market fuelled by consecutive rate cuts over the years. In times of despair, savers are being warned of investing their cash in poor easy access accounts and instead to consider a cash ISA.

It has been estimated that balances held in easy access ISAs are disappointingly less than a third of the cash that’s held in a taxable equivalent account, with £354bn sat in taxable easy access accounts opposed to just £108bn in easy access ISAs*.

Savers could be missing out on extra interest by neglecting easy access ISAs, according to the latest figures released by

Rachel Springall, Finance Expert at, said:         

“It’s true that savers have been left devastated by persistent rate cuts across the market, and the Bank of England’s base rate cut has given providers another excuse to slash rates. This month there have been 285 rate cuts and what’s worse, 20 best buy deals completely withdrawn from the market.

“Some savers may wonder if there will ever be any good news, and in uncertain times there are likely to be those reluctant to invest in any account that locks in their cash. These savers will be looking out for a decent easy access account, but they would be wise not to forget about ISAs. The average easy access ISA pays 0.87%, whereas its taxable counterpart pays just 0.50%.

“Granted, savers have the Personal Savings Allowance (PSA) and some may assume this makes an ISA redundant, but this is just not the case. There is no guarantee the PSA will last forever and those consumers prioritising their emergency cash savings by using an easy access account will in fact find some ISAs pay a better rate. Most of the providers doing so are mutuals, who clearly want to support their customers in uncertain times.

“Thankfully there is an abundance of easy access ISAs paying over a base rate beating 0.25%, with only five deals paying 0.25% or less compared to a disappointing 55 deals for their taxable counterparts. It has been estimated that 80% of easy access accounts have not been switched over a five year period*, which could well be down to the poor rates on offer. Therefore, it’s understandable why consumers might need to start looking towards ISAs for a better return with the same flexibility.

“Clearly, the notion that ISAs are dead in the water is just a myth, these tax efficient vehicles are designed to benefit savers over the longer term and provide flexibility. The only downside to ISAs are the longer term fixed rates where they pay slightly under their taxable counterparts – so choosing the right deal will completely come down to an individual’s tax allowances.“

*Source: FCA Cash Savings Market Study report - The Money Search Engine is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.

© 2005-2022 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in